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Bonus NZD/USD Trade; Buy at 0.6912

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

Last updated 3/12/2010 6:54 PM EST (GMT -5) 5 Comments

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Bradley W. Gareiss

Technical Analyst, GFT

There is a bullish Gartley pattern setting up a long trade on the NZD/USD.  This does not conflict with the opportunity to sell that we have posted on the primary technical report.  This pattern has excellent price symmetry, although the pair is too far from completion to judge its time symmetry.  The trade would enter just below 61.8% of YZ on the 8hr Chart, which adds further strength to this trade.  Overall, this is a fairly textbook setup.

We are looking to buy the NZD/USD if it falls to 0.6912 (Point D).  Point D is located at the convergence of the following points:

We will now go over what to watch for assuming the pair continues falling toward our entry at 0.6912.  If the pair moves down rapidly and has long bars near point D, we will not enter the trade.  Also, if the pair comes within 10 pips of reaching our entry, does not enter, and reaches 0.6970 before entering, the trade is invalid.  The trade is also invalid if the pair rises above 0.7060 before hitting our entry.

To recap, we will look to buy the NZD/USD at 0.6912 with our stop placed at 0.6882.  Our initial profit target is 0.6958 (38.2% of CD).

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  • 8hr Chart - Trade would enter just below 61.8% of YZ.
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  • 2hr Chart - Bullish Gartley; buy at 0.6912.

The information, including Commentary and Trade Ideas, provided on FX360.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. Global Forex Trading and FX360 .com is merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. Any projections or views of the market provided by FX360.com may not prove to be accurate.

The views of the authors and analysts are not necessarily those of Global Forex Trading, its owners, officers, agents or other employees. FX360.com and the currency research team will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on FX360.com. Global Forex Trading and the currency research team do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.

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Comments (5)

fishmanszmit

March 14, 2010 at 05:18 PM ET

Is this trade expected to occur before or after the projected sell trades you have posted? Thank you!

bgareiss

March 15, 2010 at 11:46 AM ET

We don't know which trade will enter or whether either trade will enter at all. This of them as two separate trades that have no impact on each other.

Brad

Sed

March 16, 2010 at 11:19 PM ET

You posted a trade to sell NZDUSD at 0.7141, currently NZDUSD rebounded from 0.7132. Is your recommendation of selling at 0.7141 trade still valid?

bgareiss

March 16, 2010 at 11:27 PM ET

The trade idea is still valid at the time of this posting. Everything you need to know about any trade being invalidated is described in the invalidation section of the article.

Brad

fishmanszmit

March 17, 2010 at 02:58 AM ET

I think it is NOT invalidated. The article says, "Also, if the pair comes within 10 pips of reaching our entry, does not enter, and reaches 0.6970 before entering, the trade is invalid.". After a long wait, last night my chart hit .7129 and then backed down to .7107. Last night I thought it invalidated but still waiting. Thank you Brad and good trading to us all Sed

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